Baguio City — The city government has adopted an Economic Continuity and Resilience Plan aimed at protecting vulnerable residents and small businesses from financial shocks caused by global crises and rising fuel costs.
The plan, recently approved by the City Council, was proposed by Mayor Benjamin Magalong, who said the policy seeks to ensure continued access to essential services and stabilize local market prices.
Magalong warned that geopolitical tensions in the Middle East could trigger an economic slowdown that may rival the impact of the COVID-19 pandemic.
He noted that national gross domestic product (GDP) growth declined from an average of 6.0 percent to 3.0 percent in the final quarter of 2025, with projections for the first half of 2026 expected to fall below 2.0 percent due to reduced government and consumer spending.
The City Budget Office estimates that Baguio will generate P3.5 billion in revenues in 2026, but this is projected to decline to P3.3 billion by 2027. City Budget Officer Leticia Clemente said the tightening fiscal space may challenge the city’s ability to meet increasing public needs while addressing the energy crisis.
Executive offices of the city government have been directed to integrate the resilience plan into their respective budgets and review existing programs to ensure fiscal efficiency.
The framework outlines four priority levels for funding and implementation, with an average annual allocation of P1.11 billion.
Priority Level 1 receives the largest share at P948.2 million, focusing on energy, water, food supply, and transport logistics. Other tiers will support small businesses, strengthen digital infrastructure, promote domestic tourism, and develop long-term renewable energy and waste-to-resource projects.
City Planning, Development, and Sustainability Office head Donna Tabangin said the plan aims to protect Baguio’s service-driven economy, where the sector accounts for more than 70 percent of local activity.
She added that by addressing inflation and supply chain disruptions, the city aims to maintain stable employment and sustain business operations.
The strategy also calls for coordination among the transport sector, tourism industry, and government agencies to ensure long-term economic and social stability.